Lumibird to acquire Ellex’s laser and ultrasound business

24 Dec 2019

A$100M (€62M) deal to create global laser and ultrasound provider of systems for diagnosis and treatment of eye diseases.

France-based laser group Lumibird has signed an agreement with the Australian company Ellex Medical Lasers to acquire Ellex’s laser and ultrasound business for 100 million Australian dollars (approximately €62m). This acquisition is set to create a provider of laser and ultrasound technologies for the diagnosis and treatment of ocular diseases.

Under the transaction agreed on December 23, 2019, the Lumibird Group will acquire all of Ellex’s laser and ultrasound activities, with pro forma revenues of A$ 65.5M (€40.6M) based on the year ended June 30, 2019.

Assets to be acquired include the Ellex brand, the R&D and production site in Adelaide and the commercial subsidiaries based in Australia, Japan, the US, France and Germany. For the year ended June 30, 2019, the laser and ultrasound segment recorded an A$ 9.5m EBITDA, excluding head office costs.

Lumibird’s said that the combination of medical activities (through its subsidiary Quantel Medical) with those of Ellex “offers strong potential for growth and value creation, including: product synergies in terms of the pathologies addressed and commercial synergies, with Ellex directly handling 75% of its sales, while Quantel Medical sells primarily through its strong network of distributors.

'Laser-treatable blindness'

Marc Le Flohic, Chairman and CEO of Lumibird, commented, “To truly create a difference in the lives of as many people affected by laser treatable blindness as possible, it is vital for companies such as Quantel Medical and Ellex to come together to reach a critical mass and make the most of their respective strengths.”

Maria Maielli, CEO of Ellex Medical Lasers, said, “The proposed sale of Ellex Lasers & Ultrasound to Lumibird, which includes our manufacturing facilities in Adelaide highlights the value of our brand, the dedication of our employees, the strategic importance of our global sales and distribution network, and the many doctors and patients we serve. Lumibird will make an excellent strategic fit for Ellex’s market leading range of lasers and ultrasound to treat a range of important eye diseases.”

Jean-Marc Gendre, CEO of Quantel Medical, added, “Quantel Medical and Ellex know one another well, which will facilitate their integration. The two companies have complementary assets, with strong brands and ophthalmic market expertise. The acquisition will be submitted to Ellex’s shareholders for approval at a general meeting to be held during the first half of 2020, with completion expected to occur mid-2020. It will be financed partly through equity and bank debt.

Lumibird’s acquisition of Ellex’s laser and ultrasound activities has been approved by the Boards of Directors of both groups, and Ellex’s Board of Directors have unanimously recommended that Ellex’s shareholders approve the operation with Lumibird. The new Lumibird’s Medical branch extended in this way is targeting €90m of revenues by 2021, with an EBITDA margin of 15%. Lumibird’s Medical business recorded €33.6m of revenues and an EBITDA margin of 10.6% in 2018.

Lumibird acquires Halo Photonics

This important transaction for the Lumibird group represents what the company called, “a significant step forward with the external growth strategy of the Lumibird Group, which is continuing to explore opportunities for acquisitions in its three strategic segments. On a more modest scale, Lumibird has just acquired the UK-based Lidar systems manufacturer Halo Photonics, with annual sales around GBP 3M (€3.5 M).